Texas Fund Manager Convicted in ‘Life Settlement’ Scheme

June 10 (Bloomberg) -- Adley H. Abdulwahad, one of three
principals at Houston-based A&O Resource Management Ltd. charged
with stealing $103 million in a death benefits scheme, was found
guilty by a federal court jury in Virginia of conspiracy,
securities fraud and money laundering, prosecutors said.

Abdulwahad, 35, and his colleagues stole money from 800
people across the U.S. and Canada, including elderly retirees
who lost their life savings, in a scheme to sell “life
settlements,” U.S. Attorney Neil MacBride in the eastern
district of Virginia said today in an e-mailed statement.

The investments involved life insurance policies that were
sold to a third party, with the policy owner getting a cash
payout while the buyer of the settlement investment paid the
premiums to maintain the policy and collect the benefit upon the
death of the insured person, prosecutors said in September when
Abdulwahad was charged.

The underlying life insurance policies never existed in any
number that they could possibly pay off their investors,
prosecutors said. Evidence at trial showed that Abdulwahad
routinely used investor funds for personal use, including a
lavish home, a Ferrari and a BMW, according to the statement.
Abdulwahad faces as long as 20 years in prison. A co-defendant
was convicted in March.